CSRD-Berichtspflicht & Klimapläne

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All aspects that the new and more stringent CSRD reporting obligation are increasingly permeating all economic activities. Only small companies are still without own climate plans, Environmental or ESG strategies as long as they are not a supplier or do not rely on corporate loans. However, reporting standards are also being developed for them, some of which will be mandatory from 2028 at the latest. Listed SMEs will then have to LSME reports and non-capital-market-oriented companies can publish VSME sustainability reports.

CSRD reporting obligation

The CSRD reporting obligation was extended to SMEs from 2024. It is part of the EU "Sustainable Finance" legislative package and aims to increase the transparency and comparability of sustainability reports. Listed companies are now also affected. SMEs and companies that meet certain criteria. The reports must cover environmental aspects, social responsibility, human rights and governance. New content for CSRD reports includes Taxonomybusiness model, Supply chainstargets, performance indicators and more. Reports must be included in the management report, audited by independent service providers and should meet the TCFD-standards. The obligation to collect data begins in 2024and from 2025, companies must submit CSRD-compliant reports. Parent companies outside the EU will be subject to CSRD reporting requirements from 2029.

The CSRD reporting obligation explained briefly and concisely.

Climate plans as the basis for CSRD reports

A quarter of the companies affected by the CSRD reporting obligation have No climate plans or sustainability strategy yet. The main problems with implementation are excessive demands, unclear CSRD interpretation, time pressure and lack of resources. It is recommended to develop a sustainability strategy at an early stage, carry out a comprehensive data assessment and introduce clear processes. Errors in CSRD reporting can lead to serious consequences, including Fines of up to 5% of annual turnover or 10 million euros. Management boards bear the main responsibility, followed by the supervisory board. Companies should prepare themselves well in order to avoid legal and financial risks.

ESG standards are gaining in importance

"Greenwashing" is increasingly falling into disrepute and is now also being officially punished. The threat is not only Loss of reputation or stock market value but also heavy fines. CSDDDa proposal by the European Commission, is intended to oblige companies to comply with environmental and human rights standards in global supply chains. The law will probably come into force by 2026. Companies must identify, report and minimize negative impacts on the environment and human rights. SMEs are probably Not directly affectedwhile larger companies must develop strategies for the Paris Climate Agreement. CSDDD is seen as a sharper sword against ESG violations and greenwashing.

Banks insist on climate plans, CSRD & ESG data

Various studies show that ESG criteria and climate plans in loan discussions with banks are playing an increasingly important role, also for small and medium-sized companies. EU regulations require banks to take ESG risks into account, which Significant effects on credit decisions has. According to the studies, 10 % of banks already require ESG data from SMEs, with a further 51% planning to do so in the foreseeable future. Small companies and SMEs face challenges as many do not yet comply with EU sustainability reporting requirements. ESG risks already influence the business model of 24 % of the banks surveyed, and 54 % have rejected transactions due to such risks.

Is your company affected by the reporting obligation?

CUBE CONCEPTS offers a free consultation to answer any questions you may have. Or have you not yet ESG strategy with climate plans for your company? Make an appointment now - our energy experts look forward to hearing from you!